TSP required minimum distributions


Q. I have a TSP loan which I anticipate will not be repaid by the time I retire sometime past age 70.  Will the unpaid amount of the loan that is declared a distribution after I retire be counted for the purposes of the Required Minimum Distribution for that year?

A. The outstanding balance due will be declared a taxable distribution 90 days after you retire. This amount will be considered ordinary income for the year in which it is declared. This distribution may be used to satisfy any RMD that may be due for that year.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

Leave A Reply